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• # 101522
• Wed 17 Sep 2014 08:36 AM

Hi

Please can someone clarify claiming mileage when using your own car for company business - mostly Directors in our company.

As I understand it, you need to log each journey separately with details of what the journey is for and how many miles it takes.  You cannot lump all the journeys for one month and put on your expenses claim form "various projects" and total the miles for that month.  Is that correct?

We currently pay 30p per mile, so if a Director, for example is submitting a Self Assessment Tax Return, they can claim back the difference between what we pay as a company and what the recommended rate is by HMRC ?    

Is there a way of inputting this into Sage for the accountant to pick up or do the Directors just need to submit their expense forms when they hand in all their stuff to the accountant for their Self Assessment?

What about fuel receipts which obvioulsy have VAT on them.  Is there a way to claim that back?  I have heard that you claim back a proportion of the VAT for the journey made as long as the fuel receipt is dated before the journey made.  Is this true and how would I input that in Sage (Cash Accounting)?

I hope someone can help - thanks in advance.

LMcQ

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• # 101525
• Wed 17 Sep 2014 02:40 PM

Hi there

I can only help you on the first part, as we also claim petrol back to business use in own car.  We pay this through petty cash and though make periodic payments and just describe it as "Directors Name - Diesel" we do keep an individual list of all journeys which is held in the directors files in case at any point in the future we are asked to prove the journeys.

Not sure about claiming the diff on VAT but we dont do that much mileage so it may not be worth it.

Hope someone else can help you further.

Lisa

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• # 101541
• Thu 18 Sep 2014 10:23 AM

To establish the VAT element you will need to look up the " advisory fuel rates" table on the HMRC website. If for example the applicable rate is 18p per mile then you would be able to reclaim 3p VAT per mile but there is no VAT element to the remaining 12p (30-18). The mileage rate is designed to cover the cost of fuel, wear and tear, insurance etc. but only the fuel element is allowed for VAT purposes.

Regards

Gordon

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• # 101548
• Thu 18 Sep 2014 04:44 PM

Hi LMcQ,

Here is a link to a blog which explains how to reclaim the VAT on the fuel element of the mileage payments:

http://www.tmtaccounting.co.uk/blog/can-i-reclaim-vat-paying-45p-mileage-allowance

Hope this helps.

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  Helen
  http://www.lookaftermybooks.com/
  
  

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• # 101558
• Fri 19 Sep 2014 11:09 AM

>
> Really useful article - thank you. LMcQ
>
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